The surplus of speculating investors who cleverly learned how to leverage leverage OPM (other peoples money) and work the system, is now backfiring throughout the market and circling back around to correct itself.

A fourth of the homes bought across the nation the last few years were purely speculative for profit and not bought to be lived in by buyers.

One car dealer I know who owns several rental properties is eating it big time and losing money. He recently told me that after he accounts for property taxes (which in a year may for the first time go down), improvements, and maintenance to care for the homes he rents; at the end of the day he’s losing money considering the amount of time invested to do all of that.

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